Friday, June 05, 2009

It's amazing the effect of increased competition on air fares. Case in point USA to Australia. Previously Qantas and United had a virtual duopoly (a monopoly for two). This year we have V Australia and soon Delta also on the route.

The result is fares lower than they've been for many years and almost continuous sales. If you want to visit Australia but have been put off by the fares, go this year. There is an added bonus in the relatively low Australian dollar making accommodation, food & drink, inter-Australia travel, activities and shopping even cheaper.

There have also been some good fares from Australia to USA, but not as heavily discounted as in the reverse direction.

The situation cannot last - either the newcomers will stop expanding flights or drop if the competition is too much, or the airlines will eventually settle into more realistic fares.